Euro Dominos Will Fall Until Currency Is Split: Matthew Lynn - BusinessWeek
This article overall is interesting. What comes after Irelands bailout sort of thing. Then proposes a Euro currency split into separate Eurozones I suppose.
The one part in Irelands description though is .. well ...
"Ireland had one of the most successful economies in the world over the last two decades. Its government was never profligate. "
The article is affiliated to Bloomberg it seems!
Robut
Excellent article, though the usual self-haters on here will deny it.Originally Posted by robut
No! No! No!
Don't you get it? Businessweek is a Eurosceptic rag! Probably funded by the cia, or the libyans, and it probably robbed Northern Bank.
Spotty. A pimple on the arse of politics.
Good article.
Sums up what a lot of people have been saying.
tick tock. Who wants popcorn?
"The power of accurate observation is commonly called cynicism by those who have not got it." – George Bernard Shaw
Sh!t - first we have Four Star and now Dominoes.
There is no argument for us to be in a single currency with the other PIGS. Or them with us. If the euro is to break up we must go it alone.
How exactly would you break-up the currency though into sub-units ?
Where would you divide it?
Does Ireland have anything in common with Greece or Spain in terms of economics other than that they're all in crisis? Wage rates are enormously different, economic policies are totally different, tax rates are different, people's behaviour in terms of housing etc is totally different.
Does Germany have anything in common with the French economy?
How exactly would this achieve anything other than creating several equally crisis prone mini-Euros that would make even less sense than the one-size-fits-all Euro we have at the moment.
I think either the Euro continues as is, or the whole project is wound-up. It can't be a half-assed approach.
The problem with Europe is that everything's a la carte and half-assed when it comes to what are effectively federal policies.
The Euro is a single element of federal Government taken in isolation. We have a single currency without a federal fiscal policy or a federal social welfare policy and with completely incompatible systems.
Part of the reason that the Eurozone is far more unsable than the US$ is that there simply aren't the kinds of massive federal budgets or the same level of integration between Eurozone members as there are between US states. Yes, we have a bit of agricultural funding and structural funds, but these are nothing compared to the kind of spending power the US federal Govt has.
There probably never will be anything approaching a fully federal Europe. It's politically impossible. So even attempting to go down that road is a bit of a joke. They're countries, not states. They don't share a lot of common values in terms of social and political policy in many cases and they have massive language barriers and completely separate political systems.
I honestly think we need to re-think the Euro. Maybe not abandon it completely, but certainly come up with some kind of a system which allows for local control of interest rates available through banks or something to allow a buffer to keep this kind of madness from happening again.
This is the only currency Ireland will need to get used to.
Deutsch Mark 2.0 is quite unlikely. I would say we'd be more likely to see Ireland doing some kind of unofficial use of Stg£ as it would make far more economic sense as the UK tends to be on the same fiscal/economic cycle as we are!
Sounds a lot like the East/West German Deutschmark debate.
I wonder how Merkel would handle that one if she could go back in time?
Anyway, perhaps there are lessons for the Euro from that era.
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